By George Liu:2011 was a year of turmoil for worldwide financial markets, with the near unraveling of the eurozone and the euro, continued signs of economic stagnation in the United States, and the wiping out of $6.3 trillion in global stock market capitalization, according to the Financial Times.
By MyPlanIQ:Investors is flocking to fixed income bond ETFs and mutual funds in the current market calamity. Long term treasuries (TLT, TLH) rose most (TLT rose 8% in the last four days), representing safe havens even after the debt ceiling fiasco. The following shows the current fixed income ETF trend ranking, as 8/3/2011.
On February 14th — one month ago — we pondered “Long Bonds and Yen: Big Shorts for 2012?”
Japan’s currency (which we short circa Feb 14) has been in freefall the past four weeks, from 77 to 83 yen to the dollar. (As the yen declines in value, USDJPY rises.)
And now, this week, we may be seeing the long bond breakdown:
Michael Johnston submits:With lingering uncertainty over the outlook for the global economy, safe havens have generated a tremendous amount of interest this year. While much of the attention has focused on gold and its continued run to new record highs, it is another asset class that has stolen the show in 2010. Long-term Treasuries have climbed steadily higher during 2010, defying the predictions of many “experts” and thriving on a wave of risk aversion.
By Ploutos:Global markets have been historically tumultuous over the last several years as the Great Recession extended into the European Sovereign Debt Crisis. Investors seeking market safe havens have pushed the yields on traditional flight-to-quality instruments, like U.S. Treasuries (GOVT), to record low rates.
By Rani Chopra
The market has experienced unprecedented volatility and investors are getting more risk averse than ever before with equity fund outflows exceeding $61 billion since the start of May. The CBOE Market Volatility Index, (VIX) considered to be the markets fear indicator, continued to fall yesterday and is now down 12%.
Tom Lydon submits:
Economic uncertainty, lingering debt problems in Europe, tepid employment numbers and high volatility are just some of the reasons why the markets and ETFs have see-sawed in the part quarter. Still, investors found some safe havens and heavily traded in two particular asset classes.